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07 April 2011

Internet & Telephone Banking Market Report

Extract from Executive Summary

The Internet and telephone banking market is one that is experiencing a period of dramatic change, both in terms of users and product. This time of change is expected to continue in the future, making for some exciting times in the industry. Internet banking has been the major success story in the industry. A number of new functions have become available to Internet banking for consumers, such as applying for a loan or extension of an overdraft. In the past, customers had to visit a bank branch to ask the bank manager for a loan, but now this can be done online in a much shorter period of time.

In terms of the number of Internet banking users, Key Note estimates that there were 45.1 million bank accounts registered to use Internet banking in 2010, up from 28.2 million in 2006. This rise shows how this part of the market is growing rapidly and banks need to be prepared for this figure to continue to rise, as Key Note has forecast that there will be 59.8 million bank accounts registered to use Internet banking in 2015.

Telephone banking is a market that is in slight decline. In 2009, the number of telephone banking users fell for the first time since its launch in 1989 and Key Note has forecast a small loss of accounts using telephone banking in 2010. This decline is forecasted to continue into the future. Mobile banking will become much more accessible in the UK in 2011.

This Key Note report is available to current London Business staff, students and faculty from Key Note Online which can be found on the A-Z list of library databases within Portal.